1. Chapter 8 Transaction Processing Systems

2. Agenda OLD transaction processing systems Innovative IT applications SAP R/3

3. Old Transaction Processing Systems Characteristics Processing methods Types Trends

4. Characteristics Large volume, storage, output Internal usage Scheduled time frame Structured I/O High I/O speed Accuracy, integrity, security, reliability Inquiry

5. Processing Methods Batch Online Online realtime

6. Types Ordering Ledger A/P & A/R Receiving & shipping Inventory Fixed Assets Payroll Human resources

7. Trends Internet & EDI Networking: client/server, web-based Outsourcing

8. Agenda Transaction processing systems Innovative IT applications SAP R/3

9. Production/Operations & Logistics Supply chain management (Extranet, EDI) In-house logistics and material management (Intranet) Planning production/operations (Intranet, Extranet) –Material requirement planning (MRP) –Manufacturing resource planning (MRP II) –Just-in-Time systems (JIT)

10. Production/Operations & Logistics Project Management (Intranet) –Program Evaluation and Review Technique (PERT) –Critical Path Method (CPM) Design & manufacturing (Intranet) –Computer-aided design (CAD) –Computer-aided engineering (CAE) –Computer-aided manufacturing (CAM) –Computer-integrated manufacturing (CIM) 20% IT 80% business process & people (planning & management)

11. Marketing & Sales Customer profile (market database) Mass customization (Internet) Customer services (Internet) Advertisement (Internet) Telemarketing (phone, TV) Distribution network (Extranet) Price, product, service, sales, trend (databases)

12. Accounting & finance Budgeting (Internet, Extranet, Internet, database, DSS, ES) Economic forecasting (Extranet, Internet, Internet, DSS, ES, database) Investment (Internet, DSS, ES, database) Auditing (DSS, ES)

13. Human Resources Recruitment (Internet, database) Training (ES, Intranet) Performance (ES) Benefit (Intranet)

14. Agenda Transaction processing systems Innovative IT applications SAP R/3

15. Enterprise resource planning –Accounting –Sales –Manufacturing –Human resources Multinational Complex Expensive

16. Points to Remember Transaction processing systems Innovative IT applications SAP R/3

17. Discussion Question Does your organization integrate old transaction processing systems with e- commerce? –Yes, any problem? –No, why?

18. Assignment Review chapters 10, 8 Read chapter 9, 11 Group assignment Research paper